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Eligible Improvements - Allied Mortgage Group, Inc. Eligible Improvements

Eligible Improvements

Streamline FHA 203k Mortgage Loan
The Streamlined 203k Limited Repair Program allows for less extensive renovation repairs and home improvements, with a minimum repair escrow account of $5,000, not to exceed $35,000.
Eligible repairs using the Streamline FHA 203k Mortgage Loan:
  • Repair/replacement of roofs, gutters, and downspouts
  • Repair/replacement/upgrade of existing HVAC systems
  • Repair/replacement/upgrade of plumbing and electrical systems
  • Repair/replacement of flooring
  • Minor remodeling, such as kitchens and bathrooms, which does not involve structural repairs
  • Painting, interior and exterior
  • Weatherization, including storm windows and doors, insulation, weather stripping, etc.
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
  • Accessibility improvements for persons with disabilities
  • Lead-based paint stabilization or abatement of lead-based paint hazards
  • Repair/replace/add exterior decks, patios, porches
  • Basement finishing and remodeling, which does not involve structural repairs
  • Basement waterproofing
  • Window and door replacements and exterior wall re-siding
  • Septic system and/or well repair or replacement
Ineligible repairs for the Streamlined FHA 203k Mortgage Loan:
  • Major renovation or remodeling, such as relocation of a load-bearing wall
  • New construction, such as a room addition
  • Rehab of structural damage, such as caused by termite damage
  • Repair or home improvement requiring detailed drawings or architectural exhibits
  • Landscaping or similar site improvements
  • Repair or home improvement requiring a work schedule longer than six months
  • Rehab or home improvement that require more than two payments per specialized contractor
  • Require plans or architectural exhibits
  • Require a plan reviewer or approved FHA Consultant to develop a "Specification of Repairs/Work Write-Up"
  • Result in work not starting within 30 days after loan closing
  • Cause the home buyer to be not be able to occupy the property for more than 30 days during the period in which the rehabilitation is occurring
Full FHA 203k Mortgage Loan
The full FHA 203k rehabilitation mortgage loan covers repair budgets in excess of $35,000, repair items that are ineligible under the streamline 203k program, or require the use of an approved FHA Consultant.
Eligible repairs using the Full FHA 203k Mortgage Loan:
  • Structural alterations and reconstruction, such as repair or replacement of structural damage, chimney repair, additions to the structure, installation of an additional bath(s), skylights, finished attics and/or basements, repair of termite damage and the treatment against termites or other insect infestation
  • Convert a one family dwelling to a multi-family dwelling (i.e. two to four unit) and vice versa
  • Changes for anesthetics appeal and elimination of obsolescence such as new exterior siding, adding a second story to the property, covered porch, stair railings, attached carport
  • Connecting to public water and/or sewer system
  • Installation of new plumbing fixtures is acceptable, including interior whirlpool bathtubs
  • Installation of a well and/or septic system
  • Major landscape work and site improvements, such as patios, decks, and terraces that improve the value of the property equal to the dollar amount spent on the improvements or required to preserve the property from erosion
  • Rehab of existing walks and driveway is acceptable if it may affect the safety of the property
  • Adding a detached garage or another dwelling so long as the new addition is attached to the existing dwelling
  • Improved accessibility to a disabled person, such as remodeling kitchens and baths for wheelchair access, lowering kitchen cabinets, installing wider doors, and exterior ramps
  • Move an existing house onto another site
Ineligible repairs for the full 203k program include:
  • New tennis court
  • Gazebo or bathhouse
  • Additions or alterations to provide for commercial use
  • Photo mural
  • Television antenna or satellite dish
  • New swimming pool
  • Outdoor fireplace/hearth/barbecue pit
  • Luxury items


Give us a call at (877) 448- 2745 to get started or 

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